TRW Automotive has agreed to an acquisition offer by ZF Friedrichshafen (in a deal worth $13.5 billion).
TRW Automotive is the world’s leading manufacturer of safety parts. ZF Friedrichshafen (a German maker of auto parts) has stated that the acquisition fits in with the company’s long term strategy of expanding its product line.
TRW is at the forefront of developing and producing parts that protect passengers, such as air bags and crash sensors.
ZF produces parts for a wide range of American and European car manufacturers, including f driveline and chassis technology, axles , transmissions, and more. It had sales of $17.4 billion in 2013, and employs more than 65,000 people.
After the buyout ZF Friedrichshafen, based in Friedrichshafen, will become the one of the world’s leading auto parts suppliers, with a total workforce of approximately 138,000 and sales estimated to exceed $41 billion. TRW will operate as one of ZF Friedrichshafen business divisions.
ZF is going to pay $105.60 per share for TRW (at a 16 percent premium over its closing price on July 9).
Deutsche Bank and Citigroup will help finance the acquisition.
Some analysts predict that ZF’s next step is to go public, which would help finance its desire to expand.
Bosch and ZF Friedrichshafen joint venture
Earlier this week Bosch revealed that the company would be buying a stake in a steering systems joint venture with ZF, called ZF Lenksysteme. ZF Lenksysteme is based in Schwäbisch Gmünd, Germany, and reported sales of 4.1 billion euros in fiscal 2013.